Local businesses concerned about threats to online security

22 Apr 2015

Losing access to data, having business information hacked and even
snooping foreign governments are among the concerns of local SMEs
expressed in the latest MYOB Digital Nation report.

Two-thirds of New Zealand business operators are worried about
online security, according to the survey of over 1000 business owners
and operators surveyed throughout the country for MYOB by Colmar Brunton.

The leading concern for local business operators is losing access to
their data (44%), followed by hackers gaining access to business data
(42%) and losing control of their data (34%). Other worries include
the Government accessing their data, competitors seeing their
information and surveillance by foreign governments.

By region, business operators in Northland (51%) and Bay of Plenty
(54%) are less likely to be worried about online security, while those
in the Hawkes Bay (77%) and Wellington (74%) have the highest levels
of concern.

MYOB New Zealand General Manager James Scollay says the latest MYOB
Digital Nation report highlights that SME operators are worried about
the safety of their data – with just a small minority having no
concerns about online security.

“The internet, and the online storage and services in the cloud that
are now widely available, have transformed business,” says James Scollay.

“However, they have also transformed the nature of the security risk
for businesses, with the threat of loss of data, illegal hacking or
monitoring now a major concern for local businesses.”

Mr Scollay says local businesses are right to be cautious but should
not let fear of cyber-crime stop them from utilising the many benefits
of the online environment.

“As use of technology – and in particular adoption of online
services – becomes widespread, SMEs are becoming increasingly vigilant
and aware of the risks to their security. A maturing approach to
online security is a good thing, as long as we are balancing the true
risks with the wide-ranging opportunities of embracing technology.”

“Good security practices – like maintaining software updates,
firewalls and anti-virus measures – go a long way towards making
businesses secure when accessing the internet or working in the cloud.
At the same time, reputable companies that offer online products and
services are investing heavily in maintaining the highest levels of security.”

SMEs happier with internet service

Access to the internet is less of an issue for local SMEs with
business operators reporting improved satisfaction with both the speed
and reliability and cost of their internet plans.

Satisfaction with internet access (speed and reliability) has risen
from 40 per cent in September 2014 to 49 per cent in March 2015,
according to the Digital Nation report. Levels of dissatisfaction have
also fallen from 33 per cent to 29 per cent. Local SMEs are also
happier with the cost of their internet plan, with satisfaction
climbing from 30 per cent to 41 per cent and dissatisfaction falling
from 38 per cent to 28 per cent.

Across all the regions, business operators in the Manuwatu and
Wanganui are most satisfied with their internet access (66%), while
Wellington business operators are the most satisfied in the main
centres (61%). The rural community, however, is still less happy than
their city counterparts, with 44 per cent of businesses in rural areas
satisfied and 35 per cent dissatisfied with their internet access.

Growth for UFB

The proportion of SMEs connected to ultra-fast broadband has
increased five percentage points in the last six months, with 24 per
cent now using UFB, up from 19 per cent in September 2014.

Christchurch has shown the lowest level of growth in UFB connection
for SMEs – and one of the lowest connection levels nationwide, at 16
per cent in March 2015. Wellington has increased from 21 per cent to
26 per cent, and Auckland from 28 per cent to 32 per cent. UFB
connection outside the main centres has also increased, from 14 per
cent to 19 per cent. The Hawkes Bay is the most connected region
(37%), while Northland has the lowest level of UFB connection (15%).

Businesses connected to UFB have performed better during the latest
survey period, with 37 per cent reporting improved revenue in the year
to March 2015, compared to 31 per cent of those without a UFB connection.

Online businesses doing better overall

Forty-seven per cent of local SMEs currently have an online
presence, with 23 per cent only operating a business website, seven
per cent just using a social media site for their business, and 17 per
cent having both a website and a social media site for their business.
As in previous Digital Nation reports, businesses with an online
presence are more likely to report an increase in revenue (38%) than
the SME average (32%).

Mr Scollay says access to the latest internet technology makes a
fundamental difference to business performance, with far reaching
impacts across the economy.

“Our latest MYOB Digital Nation report highlights that – at every
level – if businesses are more engaged online, and have better access
in terms of speed, reliability and cost, they are more likely to earn
more,” says James Scollay.

“What this means is not only more opportunity to grow for individual
businesses but also a greater potential to increase returns throughout
the country – particularly to more remote areas which don’t have the
same access to markets and customers without the internet.”

“While business owners are right to be taking a cautious approach to
one of their most vital assets – their data, its very important we
don’t let that concern cloud the opportunities the internet can bring
for every SME. As businesses that provide online services, it is our
responsibility to work alongside internet service providers, the
Government and other agencies, to provide local business operators
with the best possible information and tools to protect themselves
online so we can ensure all of New Zealand benefits from the enormous
potential of the internet.”

For MYOB product information, research results, business tips,
discussions, client service and more visit the MYOB website, or its
blog, LinkedIn, Twitter, Facebook, Instagram and YouTube sites.

-ends-

For further comment or other information please contact:

Sarah Putt, MYOB NZ Public Affairs Manager

P: 09 925 3515 / M: 029 777 0256/ E: sarah.putt@myob.com

Gerard Blank, The Agency Communications Limited Director

P: 03 341 5841 / M: 0275 243 629 / E: gerard@theagencynz.co.nz

About MYOB

Established in 1991, MYOB is New Zealand’s leading accounting
software provider. It makes life easier for approx. 1.2 million
businesses across New Zealand and Australia, by simplifying
accounting, payroll, tax, practice management, CRM, websites, job
costing, inventory, mobile payments and more. MYOB also provides
ongoing support via many client service channels including a network
of over 40,000 accountants, bookkeepers and other consultants. It is
committed to ongoing innovation, particularly in cloud computing
solutions, and has spent $100 million in past three years on research
and development. For more information, visit myob.co.nz.

About the MYOB Business Monitor

The MYOB Business Monitor is a national survey of 1,000+ New Zealand
small and medium business owners and managers, from sole traders to
mid-sized companies, representing the major industry sectors. It has
run since 2009, commissioned to independent market research firm
Colmar Brunton. This most recent survey ran in July/August 2014. The
Monitor researches business performance and attitudes in areas such as
profitability, cash flow, pipeline, technology usage and the
government. The weighting of respondents by both geographical location
and sector is based on overall market proportions as established by
Statistics New Zealand and is drawn from an independent survey group,
which includes both MYOB clients and non-clients.